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SBA Data Show Major Increase in Loans to Latino-Owned Businesses under Biden-Harris Administration
09/25/2023
Ran in 09-27-2023 Wednesday Newsletter
Number, Rate, and Share of SBA-backed 7(a) and 504 Loans Going to Latino or Hispanic-Owned Businesses Have Increased More than 1.5X Administrator Isabella Casillas Guzman, head of the U.S. Small Business Administration (SBA), joined Congressional Hispanic Caucus (CHC) Chairwoman Nanette Barragán and other CHC members today in Orlando to announce new data showing the number, rate, and share of SBA-backed loans going to Hispanic or Latino-owned businesses have all grown significantly under the Biden-Harris Administration. “America’s more than five million Latino-owned small businesses create jobs, deliver over $800 billion to our economy every year, and add to our nation’s global competitiveness—and they could do even more if we invested in them equitably,” said SBA Administrator Isabella Casillas Guzman. “We are seeing a small business boom and the fastest creation rate of Latino-owned businesses in over a decade. Since day one of the Biden-Harris Administration, the SBA has been committed to expanding access to capital and addressing historic gaps in small business lending to this highly entrepreneurial community and this 1.5x increase in loans to Latino-owned small businesses demonstrates the positive impact of President Biden’s economic agenda. We are on the right path and we will continue to do more to deliver the needed funding to advance opportunities for all.” “Latino-owned businesses are seeing the fastest creation rate in more than a decade due to the deliberate efforts of the Biden-Harris Administration,” said Rep. Nanette Barragán, Chair of the Congressional Hispanic Caucus. “The U.S. Small Business Administration’s new benchmark loan numbers show a strong uptick in lending to Latino small business owners. While there is a long way to go to fully ensure equal opportunity for all Latino small businesses, the SBA and Biden Administration initiatives have allowed more Latino small business owners across America to access much-needed capital. The Congressional Hispanic Caucus applauds this promising trend and remains committed to working alongside the Administration to deliver positive results for Latino small businesses.” The SBA has backed more than 7,300 SBA loans to Latino-owned businesses so far in Fiscal Year 2023 through the 7(a) and 504 programs. Total loan dollars ($2.8 billion) and overall share of SBA-approved loans (12.2%) to Latino-owned businesses are both up more than 1.5X since the start of the Biden-Harris Administration.
Under the Biden-Harris Administration, the United States has experienced a historic small business boom being led by women and people of color, with 13.6 million new business applications filed since President Biden took office — a rate 65% faster than the pre-pandemic average. This small business boom has seen the fastest creation rate of Hispanic-owned businesses in more than a decade — over 20% faster than pre-pandemic levels. “Central Florida’s entrepreneurial spirit is strong—especially within the Hispanic community—and loans from the Small Business Administration are a key part of many of these businesses’ success,” said Congressman Darren Soto (FL–09). That is why I commend the tireless work of the Biden-Harris Administration and the SBA to bolster the number of loans given to Latino small business owners across the nation. This significant uptick in lending to the Latino community and other historically underserved communities is a testament to dedicated initiatives aimed at extending support to the small businesses that need it most.” “Across Florida and our nation, the Hispanic small business community has been a critical part of the fabric of our neighborhoods, keeping our economies strong and thriving while employing hundreds of thousands,” said Congressman Maxwell Frost (FL-10). “Under the Biden Administration, the SBA’s commitment to supporting Latino entrepreneurs has been the lifeline that keeps these businesses open and offers opportunities to folks who are typically shut out by big lenders.” SBA has taken significant steps aligned with the President’s Investing in America agenda to increase access to its core capital programs, including among Latino entrepreneurs. These include:
SBA’s 7(a) Loan is SBA’s primary business loan program. It provides guaranties to lenders that support financing to small businesses for working capital and a range of other uses, up to $5 million. SBA’s 504 Loan provides long-term, fixed-rate financing up to $5.5 million for major fixed asset purchases by small businesses. The SBA guarantee enables lenders to offer credit to businesses that otherwise would not qualify. SBA lenders must adhere to interest rate caps and fee restrictions; they often help borrowers by providing more extended repayment periods that would otherwise be unavailable. Complete SBA lending data for FY23 will be available after the end of the fiscal year. The public can access dashboards updated daily reflecting SBA lending totals by demographic group, industry, and other breakdowns at SBA Office Of Capital Access - Dataset - U.S. Small Business Administration (SBA) | Open Data. ###
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